Categories: InspiringStories

From Rags to Riches: The Success Story of John Gokongwei

If his success story doesn't inspire you, then nothing else will.

In 1943, I expanded and began trading goods between Cebu and Manila. From Cebu, I would transport tires on a small boat called a “batel”. After traveling for five days to Lucena, I would load them into a truck for the six-hour trip to Manila. I would end up sitting on top of my goods so they would not be stolen!

In Manila, I would then purchase other goods from the earnings I made from the tires, to sell in Cebu. Then, when World War II ended, I saw the opportunity for trading goods in post-war Philippines. I was 20 years old. With my brother Henry, I put up Amasia Trading, which imported onions, flour, used clothing, old newspapers and magazines, and fruits from the United States.

In 1948, my mother and I got my siblings back from China. I also converted a two-story building in Cebu to serve as our home, office, and warehouse all at the same time. The whole family began helping out with the business. In 1957, at age 31, I spotted an opportunity in corn-starch manufacturing. But I was going to compete with Ludo and Luym, the richest group in Cebu and the biggest cornstarch manufacturers. I borrowed money to finance the project.

The first bank I approached made me wait for two hours, only to refuse my loan. The second one, China Bank, approved a P500,000-peso clean loan for me. Years later, the banker who extended that loan, Dr. Albino Sycip said that he saw something special in me. Today, I still wonder what that was, but I still thank Dr. Sycip to this day.

Upon launching our first product, Panda corn starch, a price war ensued. After the smoke cleared, Universal Corn Products was still left standing. It is the foundation upon which JG Summit Holdings now stands. Interestingly, the price war also forced the closure of a third cornstarch company, and one of their chemists was Lucio Tan, who always kids me that I caused him to lose his job. I always reply that if it were not for me, he will not be one of the richest men in the Philippines today.

When my business grew, and it was time for me to bring in more people — my family, the professionals, the consultants, more employees — I knew that I had to be there to teach them what I knew. When dad died at age 34, he did not leave a succession plan. From that, I learned that one must teach people to take over a business at any time. The values of hard work that I learned from my father, I taught to my children.

They started doing jobs here and there even when they were still in high school. Six years ago, I announced my retirement and handed the reins to my youngest brother James and only son Lance. But my children tease me because I still go to the office every day and make myself useful. I just hired my first Executive Assistant and moved into a bigger and nicer office.

Building a business to the size of JG Summit was not easy. Many challenges were thrown my way. I could have walked away from them, keeping the business small, but safe. Instead, I chose to fight. But this did not mean I won each time.

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